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Wednesday, April 18, 2007
More on the Politics of IRS Privatization
The American Prospect has posted an excellent article on the IRS privatization program- particularly all the shady and suspicious political donations that seem -but have not been proven- to be the driving force behind the program.
Also, the article sheds some light on one of the mysteries of the privatization program- that it's found a staunch supporter in Rep. Bart Gordon (D-TN) (emph. mine).
The connection between CBE and Grassley, though, is tenuous; the connection between Pioneer Credit [one of the private debt collectors] founder and chairwoman Kathleen Balus and New York's 26th District Representative Thomas Reynolds is not. In 2006, Balus gave Reynolds $2,000. She has also donated thousands of dollars to Republican PACs, several of which have given Reynolds hefty contributions. Balus cannot be characterized as anything but a high-dollar Republican donor. According to the FEC's donor database, her donations to mostly Republican candidates and causes (Tennessee Democrat Bart Gordon manages to keep the list from being totally Republican) have totaled $42,500. Meanwhile, Reynolds, who has benefited greatly from Balus's contributions, is the member of Congress who sponsored the amendment that gave the IRS power to begin outsourcing.
Anyway, there's still one general question that needs answering. How did these contracts end up in the hands of these politically-connected companies? Did representatives intervene? How could have they have influenced the contract competition?
Sounds like it'd be a good topic for a congressional investigation...
Posted by Matt Lewis
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